Costly Mumbai Flats: Inside Rs 704 Crore Land's Billionaire Playground

Costly Mumbai Flats - Inside Rs 704 Crore Land Billionaire Playground - News Namkeen

In a significant development in Mumbai's real estate sector, Prestige Group has acquired 2.3 acres of land from DB Realty for a staggering Rs 704 crore.

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This multi-crore land deal, exploring its implications for the property market and potential buyers.

Background of the Land Deal

Prestige Group has acquired 2.3 acres of land from DB Realty for a staggering Rs 704 crore. - News Namkeen

DB Realty, the seller, had initiated the development of a residential project on the purchased land.

However, due to pending approval from the Mumbai Municipal Corporation, the project remained in limbo.

Consequently, DB Realty decided to sell the land to Prestige Group, aiming to repay loans and reduce its financial obligations.

The Implications of the High Cost

The exorbitant price paid for the land raises questions about the potential cost of the flats to be constructed.

Experts speculate that the value of these flats could reach crores, reflecting the premium associated with such a high-priced land acquisition.

Analysis of the Residential Project

The residential project that was planned on the acquired land. It highlights the reasons behind the cancellation of flat purchases and the subsequent refund process initiated by DB Realty.

Additionally, it sheds light on the delays in loan repayment faced by the company.

Financial Considerations and Loan Repayment

DB Realty had borrowed funds from lenders, including Edelweiss Asset Construction, Rare Asset Construction, and Edelweiss Finvest, against the property.

The sale of the land enables the company to repay these loans, thereby alleviating its financial burden.

Cancelled Flats and Refunds

Details about the cancellation of flat purchases and the refund process are outlined. The reasons behind these cancellations, shedding light on the challenges faced by DB Realty and the impact on prospective homeowners.

Prestige Estate's Expansion into Mumbai

The acquisition of DB Realty's land is not the first collaboration between Prestige Estates and DB Realty.

Last year, Prestige Estates purchased DB Realty's stake in two joint commercial projects in Mumbai. This section explores the expansion of Prestige Estates into Mumbai and its potential for future growth in the city's real estate market.

Future Prospects and New Projects

With around 21% of Prestige Estates' reported Rs 13,000 crore sales in FY23 coming from Mumbai, the group is optimistic about further sales in the city.

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